According to the Wall Street Journal, Cerberus Capital Management LP is nearing a deal to buy 80% of Avon Products Inc.’s North American business, and nearly 17% of the parent company.
Cerberus will pay $170 million for the North American business, and an additional $435 million for the stake in the parent, which had a market value of $1.8 billion.
As part of the agreement, Cerberus will take three seats on Avon’s board of director and designate a new chairman.
Avon has been struggling globally and the North American business has seen sales falling steadily over the past seven years.
World-wide, Avon’s revenue declined 19% in the first nine months of 2015 to $5.3 billion.
Source: Wall Street Journal